Private investor are jumping in to invest in Medical Device industry as it head for a health care boom in Asia by 2015.
The increasing incidence of chronic diseases such as Obesity, diabetes, cardiovascular disease, chronic wounds, immobility, pulmonary and vascular diseases is enhancing the need for patient care in hospitals, homes and other care facilities, thereby contributing to the demand for medical devices and diagnostics that are capable of enhancing the overall quality of life. The US leads the high-technology medical devices market, but faces fierce competition from emerging economies. Despite being way behind the US in terms of expertise or innovation, these countries compete on basis of production of low cost medical devices. Demand for medical devices in developing countries, especially China and India, is expected to grow at a faster rate than developed countries owing to factors such as rising disposable incomes, increase in patient population, growing waist lines, obesity on the rise and both India and China face an epidemic of diabetes and obeisty. Australia UK , US, Canada and Mexico are already declared an Obesity epidemic. The obesity device market will be the biggest in the healthcare sector.
Asia is seeing increasing healthcare awareness, improvements in healthcare infrastructure and increase in healthcare spending . In majority of the Asian, Latin America and the Middle East countries, government efforts are focused on improving healthcare services and infrastructure facilities, which is expected to fuel the demand for medical equipment in the next 3 years.
The medical device industry has not been totally insulated from the
adverse economic conditions, as evident by the decline in admissions
across healthcare facilities and hospitals. Owing to the high levels of
unemployment, elective, orthopedic, and cosmetic procedures witnessed a
significant decline, thereby affecting profitability of hospitals.
Additionally, rising capital costs, declining patient volumes, and
unfavorable reimbursement scenario affected revenue generation. With
most surgical systems and equipment being capital heavy investments,
tight liquidity, lack of credit availability, capital shortages, and
high borrowing rates, triggered by the recession, forced hospitals and
healthcare facilities to reduce capital expenditures on new equipment.
Though developed countries such as North America, Japan and Western and
Northern Europe witnessed subdued spending on healthcare services, level
of healthcare expenditure in developing markets continued to increase
thereby fuelling the demand for medical technologies, products and
services. However, mounting healthcare expenditure presents a
considerable challenge for most countries, particularly in developed
countries that are already grappling with the volatile economic
environment.
India and china face a problem of metabolic disease. Which is a mix of hypertention, heart disease and diabetes. The smokers in the region have increased the incidence of tobacco related problems.
Coronary stent shown below is one medical device that is implanted every 20 seconds in Asia.
There is a increased demand in consumables in the medical device sector. Implantables like the lap band will grow in Asia.
Technologies in orthopedics and spine are in great demand. Larger companies cannot compete with small and nimble manufacturers.
Spine surgery is reverting to posterior open repairs due to slower adoption of minimally invasive surgery. The outcomes show little difference between the traditional posterior fixation and minimally invasive surgery. It will take a decade for new technologies to be adopted.
Increase
number of private investors are jumping into the space because the
institutional investors have not raised new money to invest in early
stage technologies. Private investors did not have this opportunity
before. The only time they can participate in the funding of such
technologies is at the seed stage or Series A of the companies.
Thereafter the institutional investors grab the opportunity. All the way
to the exit of the company, which can be by virtue of M&A or IPO.
The increasing incidence of chronic diseases such as Obesity, diabetes, cardiovascular disease, chronic wounds, immobility, pulmonary and vascular diseases is enhancing the need for patient care in hospitals, homes and other care facilities, thereby contributing to the demand for medical devices and diagnostics that are capable of enhancing the overall quality of life. The US leads the high-technology medical devices market, but faces fierce competition from emerging economies. Despite being way behind the US in terms of expertise or innovation, these countries compete on basis of production of low cost medical devices. Demand for medical devices in developing countries, especially China and India, is expected to grow at a faster rate than developed countries owing to factors such as rising disposable incomes, increase in patient population, growing waist lines, obesity on the rise and both India and China face an epidemic of diabetes and obeisty. Australia UK , US, Canada and Mexico are already declared an Obesity epidemic. The obesity device market will be the biggest in the healthcare sector.
Asia is seeing increasing healthcare awareness, improvements in healthcare infrastructure and increase in healthcare spending . In majority of the Asian, Latin America and the Middle East countries, government efforts are focused on improving healthcare services and infrastructure facilities, which is expected to fuel the demand for medical equipment in the next 3 years.
The medical device industry has not been totally insulated from the
adverse economic conditions, as evident by the decline in admissions
across healthcare facilities and hospitals. Owing to the high levels of
unemployment, elective, orthopedic, and cosmetic procedures witnessed a
significant decline, thereby affecting profitability of hospitals.
Additionally, rising capital costs, declining patient volumes, and
unfavorable reimbursement scenario affected revenue generation. With
most surgical systems and equipment being capital heavy investments,
tight liquidity, lack of credit availability, capital shortages, and
high borrowing rates, triggered by the recession, forced hospitals and
healthcare facilities to reduce capital expenditures on new equipment.
Though developed countries such as North America, Japan and Western and
Northern Europe witnessed subdued spending on healthcare services, level
of healthcare expenditure in developing markets continued to increase
thereby fuelling the demand for medical technologies, products and
services. However, mounting healthcare expenditure presents a
considerable challenge for most countries, particularly in developed
countries that are already grappling with the volatile economic
environment.India and china face a problem of metabolic disease. Which is a mix of hypertention, heart disease and diabetes. The smokers in the region have increased the incidence of tobacco related problems.
Coronary stent shown below is one medical device that is implanted every 20 seconds in Asia.
There is a increased demand in consumables in the medical device sector. Implantables like the lap band will grow in Asia.Technologies in orthopedics and spine are in great demand. Larger companies cannot compete with small and nimble manufacturers.
Spine surgery is reverting to posterior open repairs due to slower adoption of minimally invasive surgery. The outcomes show little difference between the traditional posterior fixation and minimally invasive surgery. It will take a decade for new technologies to be adopted.
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